$heff's $tation of $tocks & $olid DD

[$heff]

nomonet...Its nice to see (.0779) a real company that is not an IHUB momo play. This is developing into a real company as evidenced by the July 24th PR below. I look forward to hearing more on how they are building a real company from their products to financials for their shareholders in the near future. Best, Sheff

BioElectronics Significantly Reduces Convertible Debt Levels
CEO Provides Update on Corporate Activities
Press Release
Source: BioElectronics Corporation
On Friday July 24, 2009, 11:00 am EDT

FREDERICK, MD--(Marketwire - 07/24/09) - BioElectronics Corp. (Pinksheets:BIEL - News), the maker of inexpensive, disposable drug-free anti-inflammatory devices, today announce it has significantly reduced its level of convertible debt. As of the end of the June 2009 quarter, convertible debt was below $100,000 compared to approximately $910,000 as of the end of the June 2008 quarter. Since the end of the June 2009, the balance has been reduced further. Andrew Whelan, CEO of BioElectronics, Corp. provides the following updates on this and other corporate activities.

Convertible Debt Reduction -- We are fortunate to have now repaid almost all of our convertible debentures and we would expect the balances to be at or near zero over the coming weeks. The elimination of this type of debt is important as most institutional investors will not invest in companies with this type of debt in place. We now have a host of mainstream financing options available that offer the Company and its shareholders a significantly reduced cost of capital.

Export-Import Bank Guarantee -- With our convertible debt level reduction, we were able to secure a guarantee from the Export-Import Bank of the United States, which is the U.S. government's official export credit agency. This guarantee will make it significantly easier for us to secure lower cost capital to finance our growing international distribution network. This is a very positive development for BioElectronics.

Recent Quarterly Performance -- Later today, we will be releasing our March quarter financials with our June quarter numbers to follow over the next few weeks. While our revenues are still relatively small, we are beginning to see strong growth, particularly within our international markets -- we are clearly now moving out of the development stage. We have maintained very tight expense controls, which have enabled us to operate at a very small loss. For example, net loss in the March quarter was just under $36,000.

Margins -- We are very excited about the margins we are able to realize on our products. As will be seen in our financials, we operate at gross margins in excess of 70% even at relatively low revenue levels. As our volumes grow, we believe we may be able to meaningfully grow these already very strong margins.

Profitability Expectation -- With a growing international distribution base, probable FDA clearances coming over the next few months and very strong margins, we expect to be very profitable over the coming quarters as our business plan further develops and as our cost of capital continues to fall.

Clinical studies and Status of FDA Filings -- We will be conducting a conference call on Tuesday, July 28 to discuss the results of a clinical study recently completed under the direction of Dr. David Genecov. In addition, the management team will discuss the status of current FDA filings and the additional FDA filings we plan to make over the coming weeks. We hope you will join us for the call to discuss these exciting developments.

Our Priorities -- Our priorities in order of importance remain the following: 1) Completion of clinical studies, 2) FDA submissions, 3) International distribution expansion, and 4) Further development our patented, drug free ActiPatch, Allay and RecoveryRx brands. Reverse stock splits or reverse mergers are not being contemplated.

About BioElectronics Corporation

BioElectronics Corporation is the maker of ActiPatch� Therapy, RecoveryRx(TM) Devices, HealFast(TM) Therapy (http://www.healfasttherapy.com/) and the Allay(TM) family of inexpensive, disposable drug-free anti-inflammatory devices. For more information please see http://www.BioElectronicsCorp.com.

Contact:
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